Difficulties In Economic Pformation In Vietnam

Since the 90s of last century, Vietnam has learned from foreign experience, implemented reform and opening up, and developed an export-oriented economy, which has experienced rapid growth for many years. P

Data show that last year, Vietnam's gross domestic product (GDP) increased by 5.42%, attracting foreign investment increased by 36% over the same period last year.

When exports from many ASEAN member countries declined, Vietnam's exports increased by 15% last year.

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Below P, but under the bright data, Vietnam is hiding the difficulties of economic pformation and accumulating worries about xenophobia.

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< p > first, the industrial structure is unreasonable, and the dividends created by exports are limited.

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The success stories of P, which started from the labor intensive industry, gradually realized industrial upgrading, and ultimately enriched the country and the people, were not uncommon in Asia. However, Vietnam's export oriented economy has a fatal weakness -- the trade deficit is serious.

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< p > Vietnam has made use of the advantages of cheap labor to export large quantities of consumer goods such as clothing, footwear, agricultural products, and primary resources such as oil, natural gas and timber.

But because of the lack of raw materials and equipment, Vietnam needs to rely heavily on imports.

This means that not only the export value is very low, but the more the export is, the bigger the deficit is, and the deficit accounts for 16% to 20% of the total export volume all the year round. Eventually, it leads to the difficulty of accumulating capital and the upgrading of industry is very difficult.

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The labor intensive industries in Vietnam (P) create basic wage jobs, which results in a relatively low level of income for ordinary Vietnamese people.

According to statistics, Vietnam's per capita monthly salary is 3 million 200 thousand shields (about 1280 yuan), while labor-intensive enterprises have lower wages, for example, the average monthly salary of textile garments and footwear industry is 2 million 200 thousand shields (about 880 yuan).

This also leads to insufficient investment in education and training, and lack of talent support for industrial upgrading.

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< p > for investment promotion, the Vietnamese government has implemented a tax and fee discount for foreign-funded enterprises less than half of that of local enterprises, resulting in the difficulty of bridging the gap between foreign capital and local enterprises.

Take electronic products as an example, 25% of foreign-funded enterprises occupy 80% of the domestic market share and the total export share, and Vietnamese local enterprises can only engage in parts assembly and OEM production.

Weak local Vietnamese enterprises can not rely on operating income to upgrade their equipment.

According to Vietnam's Ministry of science and technology, most of the technology and equipment currently used by Vietnamese local enterprises are two or three generations behind the world level, and the equipment in the 60s and 70s of last century accounted for 76%.

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< p > Second, the infrastructure is backward and the international competitiveness is not strong.

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In April, Vietnam suddenly announced the "abandoning" Asian Games. The reason given is that the budget is limited. P

Financial strain has also led to underinvestment in infrastructure.

According to the world bank survey, Vietnam's infrastructure efficiency is much lower than other Asian competitors in terms of time, cost and reliability.

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< p > according to the survey, the average export and import time of each commodity in Vietnam is 22 days and 21 days respectively.

Thailand needs 14 days and 13 days, while Singapore only has 5 days and 4 days.

Vietnam exports and imports a container with an average cost of 580 US dollars and 670 US dollars.

Singapore is 456 US dollars and 439 US dollars respectively, Malaysia is 450 US dollars and 435 US dollars.

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According to the 2013-2014 year global competitiveness report released by the world economic forum in September last year, Vietnam's global competitiveness ranks seventieth among the 148 economies, lagging behind Singapore, Malaysia and Thailand.

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In view of the huge deficit and financial strain, < a href= "http://www.91se91.com/news/index_c.asp" > Vietnam "/a" has to rely on foreign investment. Once the external capital inflow slows down, there will not be enough funds to support production, and exports will slow down, which will lead to an over reliance on external environment for economic development.

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< p > Third, the global < a href= "http://www.91se91.com/news/index_c.asp" > financial crisis > /a > influence, lack of experience in economic governance.

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< p > by the 2008 financial crisis, the Vietnamese consumer price index (CPI) index rose more than 20%, and the GDP growth rate dropped to 6.25%.

In 2009, the GDP growth rate fell by only 5.3%.

In 2011, Vietnam's GDP growth rate rose to 7%, when CPI reached 12.6%.

Although the inflation rate dropped to 6.6% in 2013, Vietnam paid a heavy price for it.

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In order to deal with inflation, the Vietnamese government tightened monetary policy in recent years. The annual interest rate of bank deposits was more than 10%, which made it difficult for enterprises that once relied on low cost credit to survive and bank bad debts suddenly increased. P

Vietnam's banking system had a bad debt rate of about 10% last year, ranking first in Southeast Asia.

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< p > Vietnam's participation in the US led "a href=" http://www.91se91.com/news/index_c.asp "p Pacific Strategic Economic Partnership Agreement < /a > (TPP)" negotiation is also a double-edged sword.

On the one hand, the attraction of foreign investment is enhanced because the rules of origin in the agreement will give Vietnam the advantage of entering the United States and Japan.

On the other hand, in order to cater for the labour provisions in TPP, Vietnam requires workers to form unions in more than 50 factories.

After that, labour disputes and workers' strike continued to increase.

Vietnam's official data show that more than 5000 strikes took place in Vietnam since 2006.

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Besides, P also adopted a policy of catering to nationalist sentiments in the Vietnamese economy.

Vietnam has launched Vietnamese Vietnamese Vietnamese goods since 2010. The latest proposal even planned to increase the market share of Vietnam's dominant commodities in 2020 to 80%.

This policy orientation has made the public antagonistic to foreign-funded enterprises emotionally. This can explain from one aspect why the enterprises in Korea, Japan and other countries were also beaten up in addition to Chinese enterprises.

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< p > international observers generally believe that the recent violence will hit Vietnam's image of international investment. In the end, Vietnam will become the biggest loser.

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